Adobe Inc.

Strong Q3 financial performance with sustained ARR momentum - Revenue: $6.76B, up 12% YoY (reported 13%). - EPS: GAAP $4.62 (+11% YoY); Non-GAAP $6.13 (+15% YoY). - Ending ARR: $27.5B, up 11.2% YoY. - Customer group subscription revenue: $6.56B, up 14% YoY (or 13% in constant currency). - Cash / balance sheet: $2.52B operating cash flow in the quarter; ending cash & short-term investments $5.64B. - Share repurchases: repurchased ~9.5M shares during the quarter; $24.55B remaining under the Apr 2026 authorization (March 2024 authorization fully used).

Guidance: Q4 and full-year FY26 raised; consistent profitability assumptions - Q4 FY26 targets (vs prior expectations): - Total revenue: $6.80B–$6.85B - BP&C subscription revenue: $1.93B–$1.95B - CMP subscription revenue: $4.665B–$4.695B - GAAP EPS: $4.65–$4.70 - Non-GAAP EPS: $6.30–$6.35 - Operating margin / tax assumptions: non-GAAP op margin ~44%; GAAP tax rate ~2%; non-GAAP tax rate ~18%. - FY26 targets (raised revenue/EPS due to strong YTD): - Total revenue: $26.576B–$26.626B - BP&C subscription: $7.47B–$7.49B - CMP subscription: $18.242B–$18.272B - GAAP EPS: $18.12–$18.17 - Non-GAAP EPS: $24.45–$24.50 - Operating margin / tax assumptions: non-GAAP op margin ~45%; GAAP tax ~22.5%; non-GAAP tax ~18%.

Key operating drivers: AI-first and agentic initiatives translating into engagement and monetization - Business Professionals & Consumers: - Subscription revenue: $1.91B, up 15% YoY (constant currency; 16% reported). - Acrobat/Express MAU: >900M, up >25% YoY. - Acrobat AI assistant MAU: doubled QoQ. - Freemium + distribution: expansions to ecosystem touchpoints (ChatGPT, Chrome, Microsoft Edge, WhatsApp, etc.) to increase engagement and conversion. - Creative & Marketing Professionals: - Subscription revenue: $4.65B, up 12% YoY (constant currency; 13% reported). - Creative freemium MAU: crossed 100M, growing >70% YoY; indicates a high-growth top-of-funnel. - Firefly ending ARR / credit packs: grew 40% QoQ; credited to higher intensity of AI usage and expanding credit consumption. - Enterprise CX growth engines: AEM & Agentic web apps >20% YoY ARR growth, Gen Studio >20% YoY, AEP & apps continued strength; Brand visibility solution momentum (customer interest; doubled paid customers QoQ for these solutions).